Vector told the NZX yesterday afternoon that its EBITDA was NZ$321.2 million, 27.4% higher than the NZ$252.2 million for the previous corresponding period.
Chairman Michael Stiassny said the significant increase in net profit was due largely to the inclusion of NZ$19.4 million from Vector’s 62.71% stake in NGC Holdings. But the full impact of this contribution was reduced due to higher interest costs as a result of increased debt used to fund the NGC acquisition late last year.
He said Vector's revenues, excluding NGC, were ahead of forecasts due to unseasonably cold weather in the second quarter of the financial year that saw an unexpected increase in both electricity and gas sales volumes.
But those increased volumes were slightly offset by an increase in operating expenditure due to higher electricity transmission costs in the second quarter. The period also saw network maintenance expenditure rise in line with expectations and budgets.
Stiassny said Vector expected to deliver a strong year-end result.
“The company is focusing intensely on preparation for its upcoming initial public offering of shares later this year," he said.
The Auckland Energy Consumer Trust that owns Vector plans to float just under 25% of the company in late 2005, hoping to raise between NZ$600 million and NZ$1 billion, which would be used to repay debt incurred by the NGC purchase.
